Avalanche Card
The Avalanche Card is a non-custodial Visa credit card designed for crypto holders seeking direct spending power from their digital assets. Users pledge USDC, USDT, AVAX, or WAVAX as collateral via smart contracts on the Avalanche C-Chain, providing a revolving credit line for purchases at any Visa-accepting merchant. Zero issuance and annual fees, 0% APR on purchases, and full self-custody over assets make this card ideal for those in regions with limited banking access. Geographical restrictions and a complex fee structure should be considered by prospective users.
- Type: Visa credit card (self-custody, collateral-backed)
- Key Feature: Direct crypto spending with user-controlled, smart contract-based collateral
- Availability: 35 US states, Latin America, Caribbean; Southeast Asia/Africa expansion planned
- Standout Benefit: Zero issuance/annual fees and 0% APR; collateral never leaves user control
- Biggest Downside: FX/cross-border fees can reach 6%; not FDIC-insured; no ATM access
Card Tiers
Detailed Summary
Avalanche Visa Credit Card: Self-Custody Crypto Card with Smart Contract Collateral System
Quick Summary
Key Features
- Self-custody smart contract system on Avalanche C-Chain
- 0% APR on purchases with no annual fees
- Supports USDC, USDT, AVAX, and WAVAX as collateral
- Available as physical card and virtual card with Apple Pay/Google Wallet integration
- Credit limit based on collateral value (100% for stablecoins, 50% for AVAX/WAVAX)
Main Advantages
- No issuance fees, annual fees, or maintenance costs
- Maintains user sovereignty over digital assets (non-custodial)
- No credit checks or credit bureau reporting
- Collateral remains in user-controlled contracts
- 24/7 dedicated customer support
Notable Limitations
- Foreign transaction fees up to 3% (potentially up to 6% combined)
- Limited availability (35 US states and select countries)
- No ATM withdrawals or cash advances permitted
- Only 50% of AVAX/WAVAX value counts toward credit limit
- Not FDIC insured
Table of Contents
Basic Information
| Specification | Details |
|---|---|
| Card Name | Avalanche Card |
| Card Network | Visa |
| Card Type | Credit Card |
| Card Issuer | Third National Bank of Puerto Rico |
| Launch Date | Announced October 2024, fully operational February 2025 |
| Card Format | Physical (red matte plastic with EMV chip) and virtual cards |
| Mobile Wallet | Apple Pay and Google Wallet supported |
| Merchant Acceptance | All merchants accepting Visa payments worldwide |
The Avalanche Card operates through a self-custody smart contract system on the Avalanche C-Chain, allowing users to maintain control of their digital assets while accessing spending power through a credit line backed by their crypto collateral. Unlike traditional credit cards, the Avalanche Card offers 0% APR on purchases with no annual fees.
Rewards and Benefits
The card features an "Avalanche Rewards" AVAX cashback program that has been announced but is not yet live at the time of writing. The specific earn rate and reward caps are still pending.
Additional Benefits
- 24/7 dedicated customer support
- No credit bureau reporting for card activities
- Borderless transactions with direct crypto spending
- Zero issuance and monthly fees
- Launch promotions including ETHDenver card drop and waitlist priority
The card does not require any staking, though it supports staked AVAX (sAVAX) as a future collateral option. No referral programs were mentioned in the source material.
Fees and Limits
Card-Related Fees
| Fee Type | Amount |
|---|---|
| Virtual card issuance | Free |
| Physical card issuance | Free |
| Annual fee | None |
| Maintenance fee | None |
Transaction Fees
| Transaction Type | Fee |
|---|---|
| Standard purchases | No fees |
| International purchases | 1% advertised, up to 3% in binding agreements |
| Foreign Exchange Fee (non-USD) | Up to 3% |
| Cross Border Fee | Up to 3% |
| Combined FX + cross-border | Potentially up to 6% |
| Late payment fee | Up to $40 |
| Returned payment fee | Up to $29 |
| ATM withdrawals | Not supported |
Spending Limits
Credit limits are dynamically based on the value of collateral in the user's smart contract:
- Stablecoins (USDC, USDT): 100% of value contributes to credit limit
- Floating assets (AVAX, WAVAX): Only 50% of value contributes to credit limit
- "Dynamic" limits can be changed or set to $0 by Rain Liquidity at any time
- No cash advances or ATM withdrawals permitted
Card Tiers and Options
| Feature | Standard Card |
|---|---|
| Issuance Fee | Free (virtual and physical) |
| Material | Red matte plastic with EMV chip |
| Annual Fee | None |
| Features | Smart contract-based collateral system Self-custody of crypto assets 0% APR on purchases Apple Pay and Google Wallet integration |
| Limitations | No ATM access Credit limit based on collateral value |
Currently, only one tier of the Avalanche Card is available. The card comes in both virtual and physical formats, with the physical card featuring a red matte plastic design with an EMV chip.
Top-Up Methods
The Avalanche Visa Credit Card does not require traditional pre-loading or top-ups; instead, users maintain their crypto assets (USDC, USDT, AVAX, WAVAX) in a self-custody smart contract wallet on the Avalanche C-Chain, which acts as collateral for a dynamic credit line. When a purchase is made, only the required amount of collateral is automatically liquidated—settlements occur in daily batches, or within 6 hours for large purchases—and the equivalent fiat (USD) is covered for the card transaction. This means there is no need to transfer funds to a custodial account or pre-load a balance, but daily liquidation may trigger disposition events. Foreign transaction fees can reach up to 6% (combined FX and cross-border), and only 50% of volatile assets (AVAX/WAVAX) count toward your credit limit. All transactions and collateral management are performed through the dedicated mobile app, with end-to-end user control and visibility.
Self-Custody Hybrid Custody
The Avalanche Card uses a hybrid custody model that lets users maintain control of their crypto assets by holding them in user-controlled smart contracts as collateral on the Avalanche C-Chain. When a purchase is made, only the necessary portion of your crypto is liquidated from the smart contract to settle the outstanding credit balance, and the resulting fiat is then used to pay the merchant through the Visa network. While your assets remain non-custodial until liquidation, you must authorize the platform's smart contract to access your funds for transactions and collateral management. If the provider disappeared, you would retain full control over unliquidated collateral in your contract, but any credit owed or pending fiat settlements could be impacted. This approach gives you strong self-sovereign control of your crypto until the point of spending, with clear trade-offs: exposure to market volatility risks and liquidation requirements, but greater security over your assets compared to standard custodial cards. The platform never holds your private keys, but does require trusted interaction with its smart contracts to access card functionalities.
Supported Currencies and Conversion
Supported Cryptocurrencies
- USDC (USD Coin)
- USDT (Tether)
- AVAX (Avalanche's native token)
- Wrapped AVAX (WAVAX)
- BENQI Liquid Staked AVAX (sAVAX) - coming soon
- Potential future support for bridged Bitcoin (BTC.b) and other tokens
Supported Fiat Currencies
- Primary settlement in USD
- Can be used for purchases in local currencies wherever Visa is accepted
Crypto-to-Fiat Conversion
The Avalanche Card uses a liquidation system to convert crypto collateral into fiat for purchases:
- Liquidation events occur in daily batches
- Additional liquidation within 6 hours of large purchases
- Forced liquidation if collateral value falls below balance
- Settlement appears to occur the next morning after transactions
Geographic Availability
Current Availability
- 35 US states (specific states not listed)
- Various Latin American and Caribbean countries
Planned Expansion
- Southeast Asian countries
- African countries
Restricted Regions
- 15 US states due to regulatory reasons
- Cuba, Venezuela, Nicaragua
- Russia, North Korea, Syria, Iran
- Crimea, Luhansk, and Donetsk regions
- All US-sanctioned countries
Compliance and Security
Identity Verification
The Avalanche Card requires a streamlined KYC process including:
- Government-issued ID upload
- Selfie verification
- Basic personal information submission
- No credit checks required
- Typically processes within 72 hours
Regulatory Framework
- Card issued by Third National Bank (Puerto Rico)
- Rain Liquidity serves as technology provider, not a bank
- Governed by Puerto Rico law
Custody Model
- Self-custody wallet system with user control of crypto assets
- Smart contract-based system on the Avalanche C-Chain
- Collateral remains in user-controlled contracts; Rain only liquidates amounts needed at default
Security Features
- Spend alerts for transaction monitoring
- Card freezing capability for lost or stolen cards
- PIN change functionality
- Two-factor login authentication
- Self-custody wallet with unique addresses for each asset
- EMV chip for physical card
Insurance Coverage
- Not insured by the Federal Deposit Insurance Corporation (FDIC)
- No other insurance coverage mentioned; assets subject to market risk
Technical Details
The Avalanche Card operates through a sophisticated smart contract system built on the Avalanche C-Chain. This system allows users to maintain self-custody of their digital assets while using them as collateral for a credit line.
Key technical aspects include:
- Smart contracts deployed on Avalanche C-Chain
- Direct wallet-connect integration in the app
- Automated liquidation mechanism for settling purchases
- Separate wallet addresses for each supported cryptocurrency
- Integration with Visa payment network for global merchant acceptance
- Mobile app available for iOS and Android
- Apple Pay and Google Wallet support for virtual card
User Experience
The Avalanche Card offers a seamless user experience through its dedicated mobile application:
- Available for iOS and Android
- Handles KYC processing and card management
- Allows monitoring and managing card usage
- Direct wallet-connect on Avalanche C-Chain
- In-app chat support
Support channels include:
- In-app chat
- Phone support: +1-202-899-8909
- Email support: support@avalanchecard.com
- 24/7 dedicated support
User feedback from early adopters has been generally positive, with users praising instant Apple Pay provisioning and lack of issuance fees. Some users have reported confusion between the advertised 1% foreign exchange fee and the actual 3% fee appearing on statements. Reddit posts from February-April 2025 show positive reception with purchase screenshots, though there have been some complaints about regional lockouts.
Best Suited For
- Crypto-first users who want to spend their digital assets without converting to fiat first
- Stablecoin holders who want to efficiently utilize their USDC or USDT for everyday purchases
- Underbanked individuals in Latin America, Caribbean, and eventually Southeast Asia and Africa
- Privacy-focused consumers who appreciate no credit bureau reporting
- Self-custody proponents who want to maintain control of their digital assets
Pros and Cons
Pros
- Non-custodial approach maintains user sovereignty over digital assets
- Zero issuance fees, annual fees, and 0% APR on purchases
- No credit checks or credit bureau reporting required
- Available as both physical and virtual card with mobile wallet integration
- 24/7 dedicated customer support
Cons
- Foreign transaction fees can reach up to 6% (combined FX and cross-border)
- Limited geographic availability with several restricted regions
- 50% collateral requirement for AVAX/WAVAX reduces capital efficiency
- No ATM access or cash advance options
- Not FDIC insured, exposing users to counterparty and market risks
Conclusion
The Avalanche Card represents a significant advancement in bridging cryptocurrency assets with traditional payment infrastructure. As one of the first non-custodial, collateral-backed Visa credit cards, it offers a compelling solution for crypto holders seeking to utilize their digital assets in everyday transactions without surrendering custody.
The card's zero-fee structure for issuance and maintenance, combined with 0% APR on purchases, makes it particularly attractive for stablecoin holders who can essentially access a fee-free USD credit card. AVAX holders face a trade-off with the 50% collateral requirement but still gain practical spending utility.
While the card shows particular promise for regions with limited banking infrastructure, users should carefully consider the potential foreign transaction fees, geographical restrictions, and absence of FDIC insurance. The upcoming cashback program may further enhance the card's value proposition when implemented.
The Avalanche Card is best suited for crypto-savvy individuals in supported regions who already hold significant digital assets and seek seamless spending capabilities without relying on traditional banking conversion processes.
Additional Information
Liquidation Mechanics
The card operates through a smart contract-based liquidation system that converts crypto collateral to cover purchases:
- Daily batch liquidations for regular purchases
- Accelerated liquidation (within 6 hours) for large purchases
- Forced liquidation if collateral value drops below outstanding balance
- Only the necessary amount is liquidated to cover purchases
Regulatory Considerations
It's important to note that daily liquidations of volatile collateral may be considered taxable disposals in many jurisdictions, potentially creating tax reporting obligations for users.
Users should be aware of the discrepancy between the advertised 1% foreign exchange fee and the up to 3% fee mentioned in binding agreements, along with the potential for combined FX and cross-border fees to reach 6%.
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